China's Caixin PMI for May in line with expectations, 3-month low

China's Caixin PMI for May came at 49.2, in line with expectations representing a 3-month low, with the official report noting that the health of China’s manufacturing sector continued to decline in May, with output and new orders  both  falling  slightly.

Commenting on the China General Manufacturing PMI™ data, Dr. Zhengsheng Zhong, Director of Macro economic Analysis at CEBM Group said: “The  Caixin  China General  Manufacturing PMI  for  May  came  in  at 49.2,  down  0.2  from  April’s  reading,  marking  the  second consecutive  monthly  decline.  Readings  for  the  output  and  new order  categories  fell  again,  but  employment  improved  slightly."

"Overall,  China’s  economy  has  not  been  able  to  sustain  the recovery it had in the first quarter and is in the process of bottoming out. The government still needs to make full use of proactive fiscal policy  measures  accompanied  by  a  prudent  monetary  policy  to prevent the economy from slowing further", Zhong said.
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